Harvard Business Review

OCTOBER 10, 2017

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s why good managers put so much focus on measuring and managing return on investment (ROI) as a basic operational practice.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

OCTOBER 15, 2013

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. It reflected the reality that a lot of GE’s growth will be coming from the developing world, and the leaders have to be there.

P&L 8

P&L Fixed Assets Charan Delegation 8

Harvard Business Review

JUNE 18, 2015

The private equity industry has grown markedly in the last 20 years and we know more than we used to about its effects on the economy. What have been less explored are the specific actions taken by private equity (PE) fund managers. What have been less explored are the specific actions taken by private equity (PE) fund managers.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

OCTOBER 21, 2016

These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. ” Improving risk management. ” Improving risk management.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

NOVEMBER 25, 2013

Only when they began to really analyze their marketing costs did the company realize that it was spending three times the industry benchmark on coupons and 50 percent more on research. Together with the CFO, the CMO must develop a set of objectives that directly deliver on financial objectives and business goals.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. It started with developing a proprietary Corporate Horizon Index. public market capitalization over this period.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

MAY 25, 2018

Mr. Rockefeller’s business strategy was to vertically integrate every aspect of the oil business (exploration, development, logistics, marketing) to assure an ongoing competitive advantage. Our own consulting industry is the poster child for this phenomenon.) First off, overall deal success rates have continued to improve.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Others, most notably money managers and former Fama students Cliff Asness and John Liew in an epic Institutional Investor article , have done a lot recent to clarify how Fama’s ideas and Shiller’s can at least co-exist peacefully.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great. How do they do it?

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

This all adds cost, with consumers ultimately bearing the burden. First, because it’s antiquated, a kludge of industrial technologies and paper-based processes dressed up in a digital wrapper. Blockchain was originally developed as the technology behind cryptocurrencies like Bitcoin.

Finance 8

Finance IPO Banking Venture Capitalist 8